1. Department for Business, Enterprise and Regulatory Reform
Department of Energy and Climate Change
www.hmg.gov.uk/lowcarbon
This vision is helping us to
Department for Business, Enterprise and Regulatory Reform
Department of Energy and Climate Change Low Carbon Industrial
First published March 2009.
Crown Copyright. URN 09/571 Strategy: A vision

2. Low Carbon Industrial Strategy: The challenge for business and government
is to make sure that the UK benefits
the public spending and planning processes
the Government has put in place, will drive
A vision economically and industrially from the
move to low carbon – ensuring that the jobs
demand for low carbon and resource
efficient goods and services.
and growth that it could bring support our
The transition to a low carbon world will transform our whole recovery from the downturn and our long But we must also think about how we best
term industrial future. equip UK businesses and workers to compete
economy. Lord Stern’s landmark Review in 2006 set out for these opportunities. In an increasingly
the economic case for action on climate change and for A low carbon industrial strategy
competitive global market it is vital we create
the conditions that make the UK the best
investment in a low carbon economy. Recognising that must seize the opportunities that country in the world to grow a low carbon
economic necessity, the UK has through the Climate Change will come with change: a new business. We need a new industrial activism
industrial activism for a new that brings together different strands of
Act become the first country in the world to adopt a legally
green industrial revolution government policy to ensure low carbon
binding target to reduce carbon emissions – by at least companies based here have access to the
We already have in place the key targets and
26% by 2020 and by 80% by 2050. infrastructure, skilled workers, research and
regulatory drivers for carbon reductions in the
development and investment opportunities
areas of households, transport and power
they need. We need to make sure that we
Achieving this means that by that date, the demands of the low carbon economy generation. The framework Government
drive the green industrial revolution from
every unit of output in Britain will need to be offers a significant potential contribution to has put in place aims to give industry the
the regions as well as nationally, building
produced using on average just one tenth economic growth and job creation in Britain, confidence to invest in bringing low carbon
on distinct regional and local advantages
of the carbon used today. not only as part of the short term economic products and services to the market. It
across the UK, and market British strengths in
recovery, but also through sustainable growth includes the Climate Change Act, which
This transition will transform our whole a competitive global marketplace.
over the decades to come. sets binding carbon budgets for the UK, the
economy. It will change our industrial EU Emissions Trading Scheme, which covers
landscape, our supply chain, and the way in The global market for low carbon goods almost half of all emissions, the Renewables Opportunities will exist in sectors
which we all work and consume. For as well and services is already worth over £3 trillion Obligation and our target of 15% of all right across the UK and global
as being an environmental and economic and growing rapidly. For the UK, which is energy coming from renewables by 2020, economy
imperative, the shift to a low carbon already a leader in many low carbon and the new Carbon Reduction Commitment,
economy is also an economic opportunity. resource efficient services, technologies For businesses, the transition to low carbon
building regulations, vehicle emissions offers both commercial opportunities and
Businesses and consumers can benefit and processes, this is a huge potential standards, and dynamic product standards
from significant savings through energy and opportunity. the chance to save money and release
for consumer goods. All these, alongside
resource efficiency measures. And supplying
1 Low Carbon Industrial Strategy: A vision Low Carbon Industrial Strategy: A vision 2

3. *80%The UK is the first country
in the world to adopt a
legally binding target to
reduce greenhouse gas
emissions by 80% by 2050
productive resources through greater energy
efficiency. At the heart of the Low Carbon
Industrial Strategy are drivers of fundamental
change in four key areas:
• Energy efficiency to save businesses,
CASE STUDY: T-Mobile
Life’s for Sharing
By establishing
an energy
management
“
The global market for low carbon goods and services is
already worth over £3 trillion and growing rapidly. For the UK,
which is already a leader in many low carbon and resource
efficient services, technologies and processes, this is a huge
“
consumers and the public services money
steering group, potential opportunity.
• Putting in place the energy infrastructure for T-mobile was able to save £648,000 on
the UK’s low carbon future – in renewables, its energy bills last year alone. The group
nuclear, Carbon Capture and Storage and helped to map and carry out a raft of
Greater resource efficiency has a includes making it easier for businesses to
a ‘smart’ grid measures to optimise energy savings,
establishing targets to drive this across fundamental role to play in increasing the access advice and support through Business
• Making the UK a global leader in the productivity and competitiveness of UK Link (www.businesslink.gov.uk) under Solutions
different areas of the business.
development and production of low business and it is also increasingly becoming for Business, the Government’s streamlined
carbon vehicles a selling point for both UK and international portfolio of business support products, and
environmental experts and other stakeholders
• Ensuring our skills, infrastructure, we will now develop our approach for customers. A national shift to greater resource the Real Help campaign being offered
procurement, research and development, ensuring UK businesses can benefit from efficiency would also support the creation during the downturn, so as to help them
demonstration and deployment policies the transformative change to a low carbon of tens of thousands of jobs for businesses make simple changes to reduce their
make the UK the best place to locate and economy. The resulting Low Carbon Industrial in this sector. resource use and save money.
develop a low carbon business and make Strategy will be published in the summer.
sure international business recognises that. Despite the clear economic case for The public sector has to demonstrate
undertaking energy efficiency measures, leadership in the move to a low carbon
The global shift to a low carbon economy Saving businesses, consumers lack of information and lack of finance – economy. The public sector could save
could help to drive renewed growth that and the Government money especially in the current economic climate a significant proportion of the £4 billion it
will lift us out of the economic downturn. It through energy efficiency – can prevent businesses from taking them spends on energy each year through
will be key to the UK’s long term industrial up. Government has a clear role in removing energy efficiency measures. The public
future. Set out here are the areas in which More efficient use of energy and other
these barriers and already provides advice sector could also boost demand for
the Government believes we can build on resources could save businesses and
and low cost finance, including through the innovative low carbon products and
existing work to create a comprehensive consumers in Britain billions of pounds every
Carbon Trust and Regional Development services as part of the £175 billion it spends
and ambitious step change that ensures year. Much of this can be achieved from
Agencies. While this assistance has been very annually on providing public services.
UK businesses can benefit fully from global simple and cheap actions. The savings
successful, our ambition is to go further. This
moves to a low carbon economy. In made could be quickly channelled into
close consultation with businesses, unions, new investment.
3 Low Carbon Industrial Strategy: A vision Low Carbon Industrial Strategy: A vision 4

4. *£3.3BN
It is estimated that UK
businesses could save a
massive £3.3 billion a year
on their energy bills through
greater energy efficiency
CASE STUDY: Blue-NG
Putting in place the energy But it is not enough to increase our use of opportunities for UK businesses are set out in
infrastructure for the UK’s low low carbon energy generation sources. We the Government’s Heat and Energy Strategy
must also transform the electricity grid itself, for consultation on 12 February, and we will
Blue-NG has created
carbon future
ensuring that it is equipped for the rapid continue to explore other opportunities such
an ultra-efficient Energy is the engine of our society and connection of new forms of energy, able to as Combined Heat and Power.
Combined Heat and our economy. Since the industrial revolution, adapt to the move to low carbon vehicles
Power system fuelled the world has been dependent on high What are the key opportunities for UK
and increasingly efficient in the way it
by sustainably sourced carbon fossil fuels for its energy needs. business in moving to a new energy
transmits and distributes electricity. Improving
bioliquid, the first of That will change dramatically in a low carbon infrastructure?
our grid architecture will be essential as we
its kind in the world. economy. In the years ahead we will be
The CHiP (Combined Heat and intelligent support more small-scale generation through
transforming our electricity generation and the advent of our new Feed-in Tariffs. £5 CASE STUDY: Smith Electric vehicles
Power) is already attracting global interest energy grid to deliver power more efficiently
due to its electrical efficiency rating billion of investment in the grid is already
and to adapt to new forms of power planned for the next five years, and we have Smith Electric
which peaks at 86%, making it 30%
generation. set an aim of having smart meters installed in Vehicles is the world’s
more efficient than its closest rival.
every home by 2020. We could also achieve largest manufacturer
By 2020 we will need to increase energy from
carbon savings by generating heating of road-going
We have two objectives on energy efficiency renewable sources by nearly 10-fold to meet commercial electric
our renewable energy targets, saving 20 centrally and distributing it to local homes
for our Low Carbon Industrial Strategy: to vehicles. Hundreds
million tonnes of CO2 each year. Alongside and businesses through district heating
facilitate a comprehensive step change in of Smith’s zero
our civil nuclear sector and a shift to clean networks. emission vans and trucks are in operation
the number of businesses and public sector
operations making the shift to greater energy coal through Carbon Capture and Storage, The UK’s Low Carbon Industrial Strategy will today with customers including Royal
efficiency, and to make sure that an active these new technologies will vastly reduce the develop further our approach for delivering Mail, DHL, TNT and Sainsburys. Boasting
industrial policy means UK firms have the skills carbon released in generating our electricity maximum economic benefits from the a top speed of up to 70 mph, a range
to advise and carry out this work, and to bring supply and heating our homes. The shift to of over 100 miles and a payload of up
UK’s shift to greater use of renewables, civil
new energy efficiency technologies to market. renewable energy sources could also help to to 7,400 kg, these vehicles are well suited
nuclear power and Carbon Capture and
reduce the UK’s dependence on imported oil for urban delivery cycles. Last month it
What are the main barriers in the UK to Storage. It will set out our strategy for making announced a major collaboration with
and gas, helping to reduce the vulnerability the UK’s energy grid more efficient and
business and the public sector realising the Ford to develop an electric version of
of UK businesses to shifting energy prices. ‘smarter’. Details of our proposed approach
full benefits of energy efficiency? the Ford Transit Connect for the North
for improving heat generation, creating American market.
5 Low Carbon Industrial Strategy: A vision Low Carbon Industrial Strategy: A vision 6

5. *7.4% Our low carbon sector
represents 7.4% of
our GDP in the UK.
Making the UK a global leader in We have already committed over £350 Making the UK the best place in CASE STUDY: OGI Groundwater
the development and production million of support to encourage uptake of the world to locate and grow a
ultra-low emission vehicles and our support Specialists Ltd
of low carbon vehicles low carbon business
for the automotive sector in the downturn has
Our transport system is fundamental to our been designed to help secure its long-term To capitalise on the growth opportunities
OGI Groundwater
economic strength, connecting people to future as a world leading low carbon industry. from a move to a low carbon economy, we Specialists Ltd is
places and businesses to markets. However, We now need to equip the UK to compete in must create the conditions for the UK to be a groundwater
the only sustainable future for transportation the global market both for vehicles and their – and be seen to be – the leading location specialist consultancy,
lies in a transformative shift to low carbon. components. in the world for growing an innovative low traditionally providing
Our ambition must be for the UK to be carbon business, developing new low carbon advice to engineering
a world leader in low carbon transport, This means removing barriers to private sector products and services. In practice, this firms who need to
especially at the forefront of development investment, accelerating the development means having people with the right skills in dig boreholes. Using their existing expertise
and manufacture of low carbon automotive of low carbon road transport technologies the right place at the right time, a research they have taken advantage of a new low
technology. through support for low carbon vehicle base which supports ground breaking carbon opportunity to become specialists
research and development, showing research, and the capacity to turn these into in the installation of Ground Source Heat
leadership through our public procurement world beating technologies. Pumps. These renewable heat systems
CASE STUDY: Wave Hub provide space and hot water heating
policies, and making the UK a leading global
The UK is already establishing itself as a major with 40% of the carbon emissions of
location to demonstrate low carbon vehicle
player in the £3 trillion global market for low conventional heating.
Wave Hub is a technology, as well as in other systems such
groundbreaking project as rail transport. carbon goods and services. Our low carbon
off the North Cornwall and environmental sector, worth £107 billion In the decades ahead, companies will make
coast to create the Our Low Carbon Industrial Strategy will set out a year, represents 7.4% of our GDP The sector
. critical decisions about where to locate low
world’s first large-scale how, working with the private sector, we can is growing fast, even in the downturn, and is carbon manufacturing and innovation. If
wave energy farm. coordinate public sector activity to ensure expected to employ over 1 million people we are to benefit, this will require strategic
It will allow wave the UK is a global leader in developing, by the middle of the next decade. thinking from government to use the power
device developers to test their devices demonstrating and manufacturing ultra-low of public procurement, public policy, and
on a scale not seen before, potentially emission vehicles and vehicle components. We also have a world class science and
shape the regulatory environment, Britain’s
creating 1,800 jobs and injecting £560 research base and a superb record for
million into the UK economy over 25 years, What is the best way for Government and infrastructure, its facilities for research and
innovation: in 2007, the UK attracted 30%
and providing the base for a much wider business to work together to secure a world development and the skills of its workers
of all European venture capital investment
marine energy industry in the UK. leading position for the UK in low carbon to make the UK an obvious international
in clean technology.
transport? destination for low carbon industry,
7 Low Carbon Industrial Strategy: A vision Low Carbon Industrial Strategy: A vision 8

6. *30 %
In 2007, the UK attracted 30%
of all European venture capital
investment in clean technology
CASE STUDY: Toyota Motor Europe
recovery, but to contribute to long term job management issues that will deliver the We now want to hear your views
creation and growth. culture change required in all sectors of
the economy. Harnessing the talent and
on how we achieve that vision.
Toyota Motor UK workers across all sectors will need to commitment of the entire UK workforce will You can contact us through
Europe take a 360 gain the skills to work with new low carbon be the key to success.
degree approach, technologies and processes, or provide new our website,www.hmg.gov.uk/
deliberately integrating services that will come with a low carbon How do we build the infrastructure, skills lowcarbon, setting out both the
training, e-learning economy. Often, these are not new skills, but and research base we need to make the
and performance UK the world’s foremost destination for challenges facing business now
new ways of applying a foundation of training
management in technical subjects. low carbon investment? and in the future, and how we
within their Environmental Leadership
programme. Tackling the entire life cycle The skills to use low carbon goods and
can work together to overcome
Next Steps – Building on
means leadership on production, logistics, services will be embedded into training them. We will use these views
sales and end-of-life skills, as well as the our vision
well known skills in vehicle technology.
across every profession, equipping
This document sets out our vision for a low
to inform policy development
businesses across the UK economy to move
rapidly to meet demand for new services. carbon economy in the UK. Going forward, towards our Low Carbon
research and development. It also means
we will work actively with stakeholders to Industrial Strategy.
The Low Carbon Industrial Strategy will set out develop our approach for achieving that
coordinated support for RD&D that is easy
how the Government will work with leading vision. We are committed to using a strategic
for business to access and navigate, and
delivered efficiently.
employers and key strategic partners, such direction from Government to continue to www.hmg.gov.uk/lowcarbon
as the Sector Skills Councils, to stimulate drive a step change in the UK’s transition to a
Our Low Carbon Industrial Strategy will set out demand, support business innovation and low carbon economy. This change is not just
ways of ensuring that the UK is the best place create the framework for developing low an environmental and economic imperative;
in the world to grow a low carbon business carbon skills in the UK workforce and securing it is also potentially a huge economic
and successfully attract new investment, jobs for the future. It will be particularly opportunity for Britain, both in moving out of
not only as part of the short term economic important to address the leadership and the current downturn, and in mapping out
our industrial future.
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9 Low Carbon Industrial Strategy: A vision Low Carbon Industrial Strategy: A vision 10